Ethanol Production Incentive
Qualified and licensed ethanol producers are eligible for a $0.20 per gallon production incentive for ethanol that is fully distilled and produced in South Dakota. To be eligible for this incentive, the ethanol must be denatured and blended with gasoline to create an ethanol blend, and the producer must have produced ethanol on or before December 31, 2006. Annual production incentives paid to one facility may not exceed $1 million. Cumulative annual production incentives paid out to all facilities may not exceed $7 million in 2012 and 2013, $4.5 million in 2013 through 2016, and $7 million each year thereafter. Funds are apportioned each month based on the claims submitted that month and the total funds available. (Reference Senate Bill 196, 2011, and South Dakota Statutes 10-47B-162-163)